Does Global Value Chain Participation Lead to Economic Upgrading?

Hüseyin Özer (), Taner Turan and Halit Yanikkaya ()
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Hüseyin Özer: Gebze Technical University
Halit Yanikkaya: Gebze Technical University

No 1760, Working Papers from Economic Research Forum

Abstract: Despite extensive research on Global Value Chains (GVCs), there remains a notable lack of empirical studies examining their impact on economic upgrading. Our study addresses this gap by investigating how different forms of GVC participation influence economic upgrading across industries. Our findings indicate that GVC participation plays a pivotal role in both product and process upgrading across all industries. For MENA region, both forward and backward GVC participation significantly and positively contribute to process and product upgrading in agriculture industry. On the other hand, while the fuels- minerals and manufacturing sectors exhibit product upgrading but these sectors do not demonstrate any improvement for process upgrading by GVC participation.

Pages: 21
Date: 2024-12-20, Revised 2024-12-20
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